Multiple Choice
The initial impact of the Fedʹs open market sale of government securities to banks is
A) an increase in the quantity of money by some multiple of the dollar volume of the sale.
B) a decrease of the banking systemʹs reserve deposits at the Fed.
C) a decrease in the quantity of money by some multiple of the dollar volume of the sale.
D) an increase in bank deposits at the Fed.
Correct Answer:
Verified
Correct Answer:
Verified
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